ABG bags Pacific First's $229 mn order

ABG Shipyard, India's biggest shipbuilder outside the government control, won a $229 million order, its largest contract, to build vessels for Pacific First Shipping.

Delivery of the 12 vessels to the Singapore-based company starts in 2008 and will be completed by December 2009, ABG's Chief Financial Officer Dhananjay Datar said. ABG now has about $786.4 million orders, the Mumbai-based company said.

Record order books at Hyundai Heavy Industries, the world's largest shipbuilder, and other South Korean groups has helped Indian companies win more business as ship owners turn elsewhere to get timely delivery.

Larsen & Toubro, India's biggest engineering company, plans to start building ships and other local companies are expanding yards to win more orders.

"Demand for vessels coupled with labor cost advantage and government support and initiatives would continue to drive growth for Indian shipbuilders,'' said Surbhi Chawla, Mumbai-based analyst at Angel Broking.